Thread regarding Chevron Corp. layoffs

Chevron's Big Foot Platform Pulled Out of Gulf Of Mexico. Indefinitely

Chevron's Big Foot Platform Pulled Out of Gulf of Mexico

Zacks

Zacks Equity Research 5 hours ago

U.S. energy giant Chevron Corp.’s CVX troubled Big Foot platform has been dragged out of the Gulf of Mexico (GoM) back to South Texas even as the company continues to probe the equipment failure associated with latching the platform to the Gulf seafloor.

In late May, the integrated major announced its plan to move its Big Foot tension-leg platform (TLP) to the sheltered waters from the deepwater U.S. GoM. The decision was taken after the company spotted damages to subsea installation tendons. Out of the 16 mile-long tendons − that were installed for securing the floating platforms − 6 sank and were lost. A few days later, additional 3 steel tubes were damaged. Hence, a total of 9 tendons were lost.

The incident forced one of the largest U.S. oil companies by market along with the likes of Exxon Mobil Corp. XOM, ConocoPhillips COP and Occidental Petroleum Corp. OXY to indefinitely postpone the planned start of oil production from the Big Foot platform, which had already been delayed for months due to the region’s strong loop current.

Among the projects that are expected to contribute to Chevron's projected 3.1 million barrels of oil-equivalent per day production in 2017 - 20% higher than 2014 output level – the multibillion dollar Big Foot development is crucial. Hence, with the loss of 9 tendons, the company believes that the anticipated net increase in 2017 production will be lowered by less than 25,000 barrels a day.

As it is, the commodity price rout has brutalized Chevron’s upstream business segment revenue and earnings. What’s more, the outlook remains grim, too, with fundamentals suggesting that the odds are firmly stacked against a sustained crude rally. That’s the reason analysts are predicting a huge drop in Chevron’s EPS this year.

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11 replies (most recent on top)

Even the platform knows what an excrement hole the GOM and its staff are. Lol. Wants nothing to do with any of it.

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Big Foot was in full development before the BP blowout. Chevron can't survive an accident like that. Better keep it in port until they find out what to do about tendons or go to a GPS motor controlled system.

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The platform was about a foot from being connected before it was pulled back. So close. In the long run, it's probably best to leave the oil in the ground at current prices.

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Chevron has enough common sense to shelf Big Foot until oil prices are up near $100 again. The tendons were experimental. They will be fortified.

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Do tell. What is the real story?

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The orig post contains everything except the real story behind what happened. The real story will roll out after the GOM ROM.

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Old news, BF will remain in port until economics say it's time to come out, keep in mind she was paid for when she came out. As for the analysts, these are the same guys who a couple of years ago were predicting $150 a bbl oil by 2015, so we know that we should "bank" on what they say. Nice try.

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Wow this is just a info page right?? Come on people its not about being canned!!! This is real world things and everyone can be affected

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OP,... when YOU get canned, please spare us by NOT becoming a financial analyst, okay? If anything, Big Foot has little to do with EPS projections through the next 4 quarters, the biggest hitters being operational and capex reductions, asset sales, and, oh yeah,... crude prices. It would appear the market has already baked the company's problems with Big Foot, Gorgon, and Wheatstone into the stock price,... and it's rising. Then,... there's the (not so small) matter of Russia having just established itself and Iran as The Eventual Rulers Of The Middle East (anyone think BARRY is gonna stop them?), and THEY want crude prices to go UP. Call me a wild-eyed optimist (or pessimist,... depends, I guess), but a stranglehold on M.E. energy might just trump ANYTHING the Chinese economy does (short of total collapse) or Little Barry Satoro's pathetic chest-thumping and bluster. The "fundamentals" have just changed.

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I don't get it. An SUV can cause Global Warming. But,... the greatest O&G company in the entire freaking WORLD can't stand up to an ocean current? An',... it's not even the BIGGEST OCEAN!

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Damn informative and well written post. Spot on update

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